BSA and AML Policy
Last updated: March 2nd, 2019
ChainRift, LLC. ('us', ‘our’ or ‘we’) developed our Bank Secrecy Act and Anti-Money Laundering Policy (‘BSA/AML Policy’) for our digital asset exchange platform (our ‘Services’) in our continuing effort to maintain the highest possible level of compliance with the applicable laws and regulations relating to anti-money laundering in the United States as well as other countries in which we serve.
We’ve established this policy as a reflection of the applicable internal policies, controls and procedures which govern our company, in its effort to combat any attempted use of our Services for illicit or illegal purposes, in addition to providing our users with protections under consumer protection laws.
We take specific measures under our BSA/AML Policy under our AML Program, to ensure that we are:
- Maintaining comprehensive transaction records, including any relevant data associated.
- Appoint a Chief Compliance Officer (“CCO”) to act as our appointed Bank Secrecy Act (BSA) Officer, under the BSA, and be responsible for the implementation and adherence to our BSA/AML Policy and AML Program.
- Filing Suspicious Activity Reports (‘SARs’) where applicable.
- Filing Currency Transaction Reports (‘CTRs’) where applicable.
- Committing Know Your Customer (‘KYC’) procedures on users, and higher levels of investigation into identity of users where warranted.
- Co-operating with any law enforcement agencies acting within the boundaries of legislative tools.
- Performing ongoing audits of our BSA/AML Policy under our AML Program and other policies as required.
- Maintaining strict and secure record retention under applicable law.
- Ensuring compliance training for all new and existing workers when warranted.
Jurisdiction and Policy
We are a registered with the Financial Crimes Enforcement Network (‘FinCEN’), and therefore comply with the regulation and guidance provided by this body. Our BSA/AML Policy has been reviewed and approved by our Board of Directors (the ‘Board’). Our BSA/AML Policy is regularly reviewed, at least once per annum, and, if necessary, revised in an effort to quickly respond and comply with rules, regulations and policies when changes may occur. These changes are logged as per our AML Program. We are a registered and regulated business operating from the State of Wyoming are regulated federally under FinCEN’s rules.
Our internal policies, procedures, and controls are designed to comply with applicable BSA/AML laws and regulations, some of which are outlined within this policy, but are not limited to this policy. Our Customer Identification Program (‘CIP’) and the applicability of our obligations to in filing of SARs and CTRs, as well as other reporting requirements, form part of our wider AML Program, which remains internal, as part of our active effort to avoid any abuse, manipulation, or exploitation of our systems.
All of our employees, officers and, where relevant, our contractors (collectively, ‘workers’), receive ongoing broad-based BSA/AML training (in addition to relevant position-specific training). This training is updated and/or repeated once annually to ensure our workers are knowledgeable in relation to the importance of compliance and risk management. Our CCO and compliance team believes in openness and transparency of the department itself, internally, and all workers have direct communication with applicable staff members in relation compliance issues, and have access to compliance related resources where applicable. New workers receive training within one calendar month of their onboarding. All documentation related to compliance training including materials, attendance and date are maintained. In addition, our compliance training program is updated as necessary to reflect current laws and regulations.
Our CCO is responsible for developing, auditing, altering and enforcing the procedures of our BSA/AML Policy, which is a part of our AML Program. Our CCO is required to report any violations of our BSA/AML Policy directly to our Board. In addition, our CCO is responsible for recording and filing SARs and CTRs where applicable and according to legislative boundaries, as well as performing a BSA/AML Policy audit at least annually. Our CCO develops and maintains worker training programs associated with our BSA/AML Policy.
Our Customer Identity Program (‘CIP’) is an important part of our AML Program, and assists us in the detection of any suspicious user activity, and allows us to take action or monitor in a timely manner; with the sole objective to prevent fraud.
User Account Creation
When a user creates a new account, in order to participate in the platform, a user’s identity must be verified and checked against various government watchlists, including, but not limited to, the Office of Foreign Assets Control (‘OFAC’). Failure to complete verification upon our request will constitute a violation of our Terms of Service, and lead to an account closure.
Prior to opening an account for an individual user, we attempt to collect and verify the following information in order to adhere to our Customer Identification Program ('CIP'):
- Legal name
- Legal address
- Date of birth
- Email address
- Phone number
- Wallet address(es)
- Transaction amounts
If you successfully meet and complete our CIP requirements, then we will provide you with account opening agreements electronically.
Prior to opening an account for an institutional or corporate entity, we attempt to collect, verify, and authenticate the following information:
- Entity legal name
- Registered address
- Business address (if different, no P.O. boxes)
- Phone number
- Corporate identification number
- Entity type
- Copies of Articles of Incorporation
- Certificate of good standing
- Country of domicile
- Secondary business document with legal address (e.g., utility bill, lease agreement)
- Nature of business
- Legal names of directors
- Legal names of officers
- Legal names of all shareholders with 15% or more equity
- Legal name and phone number of primary contact
- Sources of income
- Sources of wealth
- Source of funds
- Currency (crypto)
- Politically Exposed Person (PEP) – Y/N
- Wallet address(es), if applicable
- Anticipated transaction activity per month (volume, denomination)
- OFAC screening
- Other watchlist screening
Additional information may be required where applicable, and which may include, but is not limited to, a review of blockchain data or referral for an Enhanced Due Diligence ('EDD') review, at the discretion of the CCO or delegate acting on behalf of the CCO.
We will file SARs if we know, suspect or have reason to suspect suspicious activity has occurred using our platform and this activity meets FinCEN’s rules in relation to SARs. A suspicious transaction is often one that is inconsistent with a user’s known and legitimate business practice, activities or outside of means. Our CCO investigates and reviews any raised suspicious activity to determine if the information available meets the threshold to constitute the filing of a SAR. Our CCO maintains records and supporting documentation of all SARs and CTRs that have been filed.
All transaction records are retained for five (5) years and are available upon official request under legal instruments by an applicable examiner, regulator, or law enforcement agency.
Policy and Program Audits
The CCO is responsible for performing an audit of our BSA/AML Policy, as part of the AML Program audit, at least once per year, with its results provided to the Board for further review and planning for continuous improvement.